AIFMD in Context
With the impending application of the Directive, companies that will be affected will need to make changes to comply. To start with, it is important to understand the current situation and anticipate the next steps. Eric de Nexon, Head of Strategy for Market Infrastructures at SGSS, and Virginie Amoyel-Arpino Senior Advisor, Strategy for Market Infrastructures, help clarify where we are and what to expect in the coming months.
Momentum: How would you summarise where we are in the revision of the European regulatory landscape?
It is an overused cliché, but we have been faced with a regulatory tsunami. We continue to work extremely hard to ensure that we are best positioned to help clients cope with the demands of regulators. The detail is often extraordinary, and time-consuming for all concerned in drafting, revising, publication and implementation. A number of major issues are still pending and not clear enough despite the publication of the delegated regulations: cash monitoring, TA registration and monitoring, look-through…etc .
“The detail is often extraordinary and time-consuming for all concerned in drafting, revising, publication and implementation.”
This lack of clarity could lead to divergence of interpretation between countries; this would need to be discussed at ESMA or EU Commission level. Detailed measures will be adopted outside the scope of the legislative proposal but probably after the implementation deadline.
Momentum: How would you summarise the next steps in the process?
The implementation deadline is still scheduled on 22 July 2013 with a one year compliance period for existing AIFM. ESMA has just published on 24 May a consultation paper on guidelines on reporting requirements and responses are awaited for the 1st July 2013.
The process at national level is moving slowly but some countries - France, Luxembourg, Germany, the UK, Ireland - are ahead and intend to be ready on time.
- AIFMD part of the regulatory tsunami faced by Europe
- A number of major issues remain outstanding
- But implementation remains scheduled for July 22
• Q1 2011 – Directive enters into force (no real effect).
• 2011/2012 – ESMA negotiations/implementation/consultation (Level 2 Rules). Most rules are expected to be drafted by Q3 2011.
• Q1 2013 – Directive implemented into Member States’ local regulation/law.
• Q1 2013 – Once authorised, EU passport available for EU managers of EU Funds (Private Placement continues for non-EU fund structures).
• Q1 2014 – Firms under the scope of AIFMD must submit an application for authorisation.
• Q1 2015 (Depends on ESMA) – EU passport for 3rd country funds/managers.
• 2016 – Wholesale review of Directive